by Louis Navellier
May 19, 2026
Inflation is starting to return with a vengeance. Last Tuesday, the Labor Department said the Consumer Price Index (CPI) surged 0.6% in April and 3.7% in the past 12-months. The core CPI, excluding food and energy, rose 0.4% and 2.8% in the past 12-months. In April alone, energy prices soared 5.6%, but at least the Treasury yields did not rise significantly. Shelter costs (specifically, “owner’s equivalent rent”) surged 0.6% in April after cooling over the past few months, but this surge in shelter costs could be due to a lack of collection data during the federal government’s shutdown, thereby skewing the data, so I’d say this was a “confusing” CPI report, but despite rising prices, stocks are usually a great historical inflation hedge.
The next day, Wednesday, the Labor Department reported the Producer Price Index (PPI) rose 1.4% in April and a whopping 6% in the past 12-months. The core PPI, excluding food, energy and trade services, rose 0.6% in April and 4.4% in the past 12-months. Wholesale energy costs surged 7.8% and the cost of wholesale goods rose 2% and wholesale service costs rose 1.1%, so wholesale inflation will likely persist.
Treasury yields rose somewhat after the PPI came out, so Treasury Secretary Scott Bessett will have his hands full, since the yield curve is getting flatter. Obviously, the Fed cannot cut key interest rates while Treasury yields rise, so if this situation gets worse, Secretary Bessett and the incoming Fed Chairman Kevin Warsh may have to take some extraordinary action to get yields lower in the upcoming months.
As I had predicted earlier, GDP may rise to 5% by the third-quarter, since the Atlanta Fed’s GDP estimate for the second-quarter is now at 4% and is expected to rise in the upcoming weeks. In fact, Kevin Hassett, Chairman of the Council of Economic Advisors, said on Fox News we may be “looking at numbers north of 4, north of 5, north of even 6 [percent] because there’s so much capital stock growth right now.” This level of rapid growth is based on on-shoring, fueling record GDP growth in upcoming months, as Hassett said: “Once we turn those factories on, you’re going to see growth unlike anything we have seen before.”
On Thursday, the Commerce Department announced April retail sales were up 0.5% (month over month), in line with economists’ consensus estimate. The core retail sales (which go into GDP calculations) also rose 0.5% in April. Overall, nine of 13-categories rose in April, so although April retail sales decelerated sharply from March’s 1.6% increase, the details of consumer spending were slightly better than expected.
In addition to our bond vigilantes reacting to rising inflation, bond buyers are also focused on Britain after Prime Minister Keir Starmer signaled he would not quit after the Labour Party suffered a devasting defeat by Nigel Farage’s Reform UK party in local elections. This “Reform quake” reflected humiliating defeats in Scottish and Welsh elections. Labour MPs David Smith and Catherine West are calling for a general election.
As more Labour Party MPs abandon Prime Minister Starmer, a new election is inevitable. In fact, Health Secretary Wes Streeting challenged Starmer for Labour Party leadership. It seems Britain is adrift without effective leadership, so its gilt (bond) yields are rising and are expected to increase economic anxieties.
One other interesting international development is Cuba running out of fuel oil, as most of the country has no electricity. CIA Director John Ratcliffe visited Cuba Thursday and held a meeting in Havana demanding “fundamental changes” there. Specifically, Ratcliffe delivered a personal message from President Trump, effectively saying the U.S. was prepared to help Cuba with economic and security issues, but only if Cuba made fundamental changes. The U.S. has designated Cuba as a state sponsor of terrorism and Ratcliffe delivered this message: Cuba can no longer remain a safe haven for America’s adversaries in the Western hemisphere. Cuba apparently responded defensively, saying it does not represent a security threat to the U.S.
In the end, up to $100-million in U.S. aid was offered to Cuba, but only if it makes fundamental changes.
What to Expect from Nvidia’s Earnings Release Tomorrow
Whenever there is new uncertainty, an investor’s best defense remains a strong offense of fundamentally superior stocks. This week, we expect to see stunning earnings announced by Nvidia, which could propel the S&P 500 to a staggering 20+% earnings growth rate in the first-quarter. Since order backlogs are growing for data-center and AI-related stocks, earnings in the second-quarter are expected to be stronger.
In tomorrow’s announcement, the analyst community is currently estimating 79.3% sales growth (of $79-billion) for Nvidia, along with 119.3% earnings growth, at $1.78 per share. Naturally, Nvidia also will raise its guidance as well. Since the Vera Rubin GPU is ramping up, Nvidia has already forecasted sales and earnings momentum will be accelerating in 2027. As Nvidia closes in on $6-trillion market valuation, it will be interesting to see how the stock will react after its announcement and guidance.
Since so many call options are written on Nvidia by Citadel and other market makers, I continue to worry about the “tail is wagging the dog,” with all this option writing often holding the stock back, since Citadel wants to collect free option premiums rather than deliver stock, as options are exercised when the stock price rises. So essentially, Nvidia’s announcement is a big game of “chicken” between Citadel and other market makers, so it will be fascinating to see how NVDA will react after positive results and guidance.
Navellier & Associates; own Nvidia Corp (NVDA), in managed accounts. Louis Navellier and his family own Nvidia Corp (NVDA), via a Navellier managed account and Nvidia Corp (NVDA), in a personal account.
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
Inflation (and GDP) Soared in April
Income Mail by Bryan Perry
Trump Trip Triggers a Rare Pullback in the Super AI Tech Sector
Growth Mail by Gary Alexander
Is China’s Growth Dynamo Now Running on Empty?
Global Mail by Ivan Martchev
Quantifying a “Normal” Correction
Sector Spotlight by Jason Bodner
Headlines Scream, While Money Flows Whisper
View Full Archive
Read Past Issues Here

Louis Navellier
CHIEF INVESTMENT OFFICER
Louis Navellier is Founder, Chairman of the Board, Chief Investment Officer and Chief Compliance Officer of Navellier & Associates, Inc., located in Reno, Nevada. With decades of experience translating what had been purely academic techniques into real market applications, he believes that disciplined, quantitative analysis can select stocks that will significantly outperform the overall market. All content in this “A Look Ahead” section of Market Mail represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Important Disclosures:
Although information in these reports has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier’s judgment as of the date the report was created and are subject to change without notice. These reports are for informational purposes only and are not a solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in these reports must take into account existing public information on such securities or any registered prospectus.To the extent permitted by law, neither Navellier & Associates, Inc., nor any of its affiliates, agents, or service providers assumes any liability or responsibility nor owes any duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this communication or for any decision based on it.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier. in the future will be profitable or equal the performance of securities made in this report. Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.
None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The holdings identified do not represent all of the securities purchased, sold, or recommended for advisory clients and the reader should not assume that investments in the securities identified and discussed were or will be profitable.
Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for every investor. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. Investment in fixed income securities has the potential for the investment return and principal value of an investment to fluctuate so that an investor’s holdings, when redeemed, may be worth less than their original cost.
One cannot invest directly in an index. Index is unmanaged and index performance does not reflect deduction of fees, expenses, or taxes. Presentation of Index data does not reflect a belief by Navellier that any stock index constitutes an investment alternative to any Navellier equity strategy or is necessarily comparable to such strategies. Among the most important differences between the Indices and Navellier strategies are that the Navellier equity strategies may (1) incur material management fees, (2) concentrate its investments in relatively few stocks, industries, or sectors, (3) have significantly greater trading activity and related costs, and (4) be significantly more or less volatile than the Indices.
ETF Risk: We may invest in exchange traded funds (“ETFs”) and some of our investment strategies are generally fully invested in ETFs. Like traditional mutual funds, ETFs charge asset-based fees, but they generally do not charge initial sales charges or redemption fees and investors typically pay only customary brokerage fees to buy and sell ETF shares. The fees and costs charged by ETFs held in client accounts will not be deducted from the compensation the client pays Navellier. ETF prices can fluctuate up or down, and a client account could lose money investing in an ETF if the prices of the securities owned by the ETF go down. ETFs are subject to additional risks:
- ETF shares may trade above or below their net asset value;
- An active trading market for an ETF’s shares may not develop or be maintained;
- The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track;
- The cost of owning shares of the ETF may exceed those a client would incur by directly investing in the underlying securities; and
- Trading of an ETF’s shares may be halted if the listing exchange’s officials deem it appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.
Grader Disclosures: Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. The sample portfolio and any accompanying charts are for informational purposes only and are not to be construed as a solicitation to buy or sell any financial instrument and should not be relied upon as the sole factor in an investment making decision. As a matter of normal and important disclosures to you, as a potential investor, please consider the following: The performance presented is not based on any actual securities trading, portfolio, or accounts, and the reported performance of the A, B, C, D, and F portfolios (collectively the “model portfolios”) should be considered mere “paper” or pro forma performance results based on Navellier’s research.
Investors evaluating any of Navellier & Associates, Inc.’s, (or its affiliates’) Investment Products must not use any information presented here, including the performance figures of the model portfolios, in their evaluation of any Navellier Investment Products. Navellier Investment Products include the firm’s mutual funds and managed accounts. The model portfolios, charts, and other information presented do not represent actual funded trades and are not actual funded portfolios. There are material differences between Navellier Investment Products’ portfolios and the model portfolios, research, and performance figures presented here. The model portfolios and the research results (1) may contain stocks or ETFs that are illiquid and difficult to trade; (2) may contain stock or ETF holdings materially different from actual funded Navellier Investment Product portfolios; (3) include the reinvestment of all dividends and other earnings, estimated trading costs, commissions, or management fees; and, (4) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. For these and other reasons, the reported performances of model portfolios do not reflect the performance results of Navellier’s actually funded and traded Investment Products. In most cases, Navellier’s Investment Products have materially lower performance results than the performances of the model portfolios presented.
This report contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of The U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “plan,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions, and projections, are not guarantees of future results or performance, and involve substantial risks and uncertainty as described in Form ADV Part 2A of our filing with the Securities and Exchange Commission (SEC), which is available at www.adviserinfo.sec.gov or by requesting a copy by emailing info@navellier.com. All of our forward-looking statements are as of the date of this report only. We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. You are urged to carefully consider all such factors.
FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.
IMPORTANT NEWSLETTER DISCLOSURE:The hypothetical performance results for investment newsletters that are authored or edited by Louis Navellier, including Louis Navellier’s Growth Investor, Louis Navellier’s Breakthrough Stocks, Louis Navellier’s Accelerated Profits, and Louis Navellier’s Platinum Club, are not based on any actual securities trading, portfolio, or accounts, and the newsletters’ reported hypothetical performances should be considered mere “paper” or proforma hypothetical performance results and are not actual performance of real world trades. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier Investment Products’ portfolios and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters contain hypothetical performance that do not include transaction costs, advisory fees, or other fees a client might incur if actual investments and trades were being made by an investor. As a result, newsletter performance should not be used to evaluate Navellier Investment services which are separate and different from the newsletters. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or hypothetical Newsletter performance claims, (which are calculated solely by Investor Place Media and not Navellier) should be referred to InvestorPlace Media, LLC at (800) 718-8289.
Please note that Navellier & Associates and the Navellier Private Client Group are managed completely independent of the newsletters owned and published by InvestorPlace Media, LLC and written and edited by Louis Navellier, and investment performance of the newsletters should in no way be considered indicative of potential future investment performance for any Navellier & Associates separately managed account portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product.
Navellier claims compliance with Global Investment Performance Standards (GIPS). To receive a complete list and descriptions of Navellier’s composites and/or a presentation that adheres to the GIPS standards, please contact Navellier or click here. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report.
FactSet Disclosure: Navellier does not independently calculate the statistical information included in the attached report. The calculation and the information are provided by FactSet, a company not related to Navellier. Although information contained in the report has been obtained from FactSet and is based on sources Navellier believes to be reliable, Navellier does not guarantee its accuracy, and it may be incomplete or condensed. The report and the related FactSet sourced information are provided on an “as is” basis. The user assumes the entire risk of any use made of this information. Investors should consider the report as only a single factor in making their investment decision. The report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. FactSet sourced information is the exclusive property of FactSet. Without prior written permission of FactSet, this information may not be reproduced, disseminated or used to create any financial products. All indices are unmanaged and performance of the indices include reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any particular investment and an investment cannot be made in any index. Past performance is no guarantee of future results.